On 29 November 2021, Yango Group Co., Ltd. (000671.SZ) completed the Exchange Offers and Consent Solicitations of 3 series of US$747m Exchange Offer Notes and 5 series of US$1.5bn Consent Solicitation Notes. This transaction marks another innovative distressed exchange offers with consent solicitations for multiple series of notes in the Kungfu bonds market initiated by Admiralty Harbour, who acted as the sole Dealer Manager and Solicitation Agent.
Persistent tightening policies towards the real estate sector, multiple credit events and deteriorating consumer sentiment have resulted in temporary shut-down of various refinancing venues for the sector in 2021. Ahead of significant Q4 2021 debt maturities, including a US$247m 10% Senior Notes puttable on 12 Nov 2021, the Company has been faced with enormous pressure on its short-term liquidity.
Under extremely tight timetable, and with an aim to address looming maturities and avoid large-scale cross-defaults, Admiralty Harbour worked with the Company and pioneeringly implemented distressed exchange offers for multiple series of notes. The Transaction was structured to maximize participation from holders across the curve while balancing interests of noteholders under different series, ultimately incentivize noteholders to collectively support Company’s effort in stabilizing its financial position for future recovery.
As of 17 Nov 2021, more than 85% of each series of Exchange Offer Notes has been tendered for exchange, and the requisite consents have been obtained in respect of each series of Consent Solicitation Notes – the Company swiftly minimized short-term default risks and extend the maturities of close to US$670m senior notes, boosting market confidence in the Company.